Fed hints at first unwinding of $4.5trn balance sheet

Could begin later this year

The Federal Reserve has indicated it could begin unwinding America's $4.5trn balance sheet for the first time later this year.

According to its latest minutes from the Federal Open Market Committee meeting in June, the central bank said the process of unwinding its balance sheet could begin "relatively soon".  However, members were divided on how soon it should start with some believing a start should be announced within the next few months, and others waiting until later in the year.  Fed will have to tread carefully amid rising debt and weak economic data "Several preferred to announce a start to the process within a couple of months; in support of this approach, it was noted that the Committee's communi...